The Bank of England has voted to keep interest rates unchanged, but showed what was perhaps the clearest sign in years that cuts could come in the months ahead. Bank governor Andrew Bailey said the economy is “not yet at the point” where rates can be lowered, but things are “moving in the right direction”. For the first time since September 2021, no-one on the nine-person decision-making body that sets interest rates voted for an increase.
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00:00 Well, we've had good news. Inflation has come down. It's come down as we expected.
00:05 But we have still got some way to go, particularly with what I call the more persistent bits
00:08 of inflation. That's particularly the services element. It's about half the total basket
00:13 of prices. That's still at 6%. Now, we don't need to see it come all the way down to a
00:18 sort of sustainable level, consistent with the target. But we do need to see further
00:22 progress. But I do want to give this message very strongly. We've had very encouraging
00:26 and good news. So I think we can say we're on the way. I think that the pretty small
00:32 technical recession that we appear to have seen at the end of the second half of last
00:36 year now appears to be going away. I think we've got a pretty consistent set of indicators
00:41 coming out of our activity in the economy to suggest it's picking up. But obviously,
00:45 there's a lot that we want and need to see in place. But I think there are reasons to
00:50 believe that we are now seeing an end to that smallish technical recession that we saw last